In 1961, Teaching Research Division of Oregon State System of Higher Education began developing a variety of simulated classroom situations through the medium of sound motion pictures and printed materials. It has been testing this technique which permits a supervising teacher to control the stimulus events in the classroom via simulated experience, forcing a teacher trainee to focus on a situation and devise different modes of responding. Instructional simulation offers the trainee an opportunity to build his own strategies of searching for cues that signal a decision-making process on his part, to test hypotheses he has about how to respond to these problems, and to change his behavior in view of the feedback he receives. Findings from the first four years of research suggest that realism and prompting are not important variables in enhancing transfer of training in comparison with instructor differences and possibly length of training. Initial evidence indicates that there is transfer of learning from simulated to real experience, but much remains to be learned about how simulation best works. A project is under way to produce low-cost simulation packages (original materials required expensive laboratory facilities and equipment) that may be adapted for self-instructional or group use as well as for the tutorial method now used. (Appended is a description of the materials so far developed, the instructional procedures employed in using time, and the facilities required.) (JS)